Is an LLC required for dropshipping?
An LLC offers limited liability protection. With this protection, if your business faces losses, debt or lawsuits, your personal assets remain protected. However, an LLC is not legally required to run a dropshipping business. Consider consulting a legal or tax professional regarding LLC advantages for your specific circumstances and goals.
Steps to Form an LLC for Dropshipping Business:
- Choosing a unique business name
- Filing formation documents and paying fees
- Creating an operating agreement
- Obtaining necessary licenses
Do you need an LLC for dropshipping on Amazon?
You do not need a business license to sell on Amazon. Starting an LLC for your Amazon business protects your savings, car, and house with limited liability. An LLC also provides more tax benefits and options.
To start selling on Amazon, set up your seller account and choose an individual or professional selling plan. Many small businesses decide to form an LLC to help protect against liability. Steps to create an LLC include:
- Choosing a business name
- Registering your LLC
- Obtaining necessary licenses